The three-week-long strike by Pratt & Whitney engine workers is likely to weigh on RTX Corporation (NYSE:RTX)’s cash flow during the second quarter, CEO Chris Calio told the Bernstein Strategic Decisions Conference on Wednesday.
A person wearing a hardhat and safety glasses in a factory installing a LED high bay fixture.
On Tuesday, about 3,000 machinists approved a new four-year contract, marking the end of the first strike at the engine-maker’s Connecticut sites since 2001, where the workers’ top priority was securing a commitment from RTX Corporation subsidiary Pratt & Whitney to maintain work on the F-35 fighters in the state.
According to Calio, the strike hampered the company’s ability to ship jet engines because of which he expects break-even to negative cash flow during Q2. However, the RTX Corporation CEO was confident about the company’s ability to recover from the impact in the quarters ahead.
RTX Corporation’s shares were down 1% as of 2 PM EDT on Wednesday. Despite the dip, the company has had impressive year-to-date returns of nearly 15% on the back of notable high-value contract awards.
During the conference, Calio described President Trump’s proposed Golden Dome missile defense shield as a unique opportunity. He also added that RTX Corporation continues to expect strong weapons demand from Europe despite ongoing trade tensions.
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